- - How Trump’s tariffs hit Americans: Rising costs and global backlash

Michael Collins, USA TODAYDecember 31, 2025 at 2:03 AM

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WASHINGTON – President Donald Trump had been in office less than three months when he slapped retaliatory tariffs on imports from dozens of countries, arguing the duties would benefit American companies that have been treated unfairly by foreign nations.

But Trump’s tariffs drove up prices for American consumers, sowed confusion and anger aboard (even among some U.S. allies), and landed before a skeptical U.S. Supreme Court, which is weighing whether he acted legally.

Trump announced the tariffs during a Rose Garden ceremony on April 2, which he dubbed “Liberation Day.” Holding up a large chart, Trump said he would place 10% tariffs on imports from all countries and additional duties on 60 countries that he said are the largest contributors to the U.S. trade deficit and that impose the most significant barriers against U.S. products.

"For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike," he said. "But now it's our turn to prosper."

Takeaways: President Trump's massive tariffs are even steeper than expected

President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, D.C., on April 2, 2025.China and Canada fight tariffs with tariffs

At least two countries – China and Canada – struck back.China, which had waged a long trade war with the United States during Trump’s first term, responded to Trump’s latest tariffs with countermeasures. Beijing slapped extra levies on all U.S. goods and curbed exports on some rare-earth elements.

By the end of the year, though, the tensions showed some signs of easing. China agreed in November to resume purchases of U.S. soybeans and halted its expanded curbs on the export of rare earths minerals, while the United States lowered some tariffs on Chinese goods. Trump said he would visit Beijing next April and host Chinese President Xi Jinping for a state visit to the White House later in 2026.

Canada, one of the United States’ top two trading partners, retaliated against Trump’s tariffs by placing duties on billions in U.S.-made goods, including steel and aluminum products, computers, sports equipment and certain cast iron products. The Canadian government removed the tariffs on many of the goods in September but left in place the duties on steel, aluminum and autos.

Canadian businesses did their part to fight back. Tired of Trump’s dismissive attitude toward their country, restaurant and bar owners and others in the food and beverage industry yanked American products from their shelves while a “Buy Canadian” movement took hold across much of the country. In Montreal and other cities, bar owners stopped using Kentucky bourbon in drinks like the Old-Fashioned and substituted Canadian rye instead.

Just a bluegrass-pickin' minute: Canadians are making Old-Fashioneds without Kentucky bourbon?

Trump abruptly halted trade talks with Canada in October after Ontario's regional government aired a television ad that showed former President Ronald Reagan speaking negatively about tariffs. Canadian Prime Minister Mark Carey apologized, but trade talks between the two countries have yet to resume.

Guitars, bagels and booze: How Canadians became reluctant warriors in Trump tariff fight

Coffee packages with their price tags are on display on a shelf at a supermarket, in Union City, New Jersey on Oct. 15, 2025.Trump drops tariffs on Brazilian coffee, beef

Trump’s tariffs caused a spike in prices for American consumers. The nonprofit Tax Foundation reported in October that the tariffs had driven up retail prices by 4.9%. Other reports showed that prices for some beef cuts jumped by 18.4% in September.

A separate analysis released in October by the global investment firm Goldman Sachs concluded that Americans, not foreign exporters or overseas governments, are bearing the majority of the cost of the tariffs. U.S. consumers will absorb 55% of tariff costs by the end of this year, the analysis said.

Though Trump insisted the tariffs were not impacting food prices, he removed duties on more than 200 food products in November, including Brazilian coffee, beef, orange juice and fruit.

Are $2,000 rebate checks coming?

Trump has suggested that money raised by the tariffs could be returned to Americans in the form of $2,000 rebate checks. He initially floated the idea in July and has continued to dangle the prospect of rebate checks for several months, suggesting the $2,000 payments would go to low- and middle-income Americans and could arrive in the middle of next year.

But analysts have warned that the tariffs won’t raise enough money to pay the rebates. The Tax Foundation estimates the tariffs will generate $158.4 billion in revenue during 2025 and another $207.5 billion in 2026. But the rebate checks could cost as much as $606.8 billion – double the amount of revenue the tariffs are expected to bring in, the organization said.

'I'll believe it when I see it.' Are $2K tariff checks coming soon? Why Americans have mixed feelings.

Rebate checks: Trump wants to send $2,000 checks. Tariffs may not cover them.

Supreme Court to decide fate of tariffs

The fate of Trump’s tariffs rests with the Supreme Court, which is weighing whether he acted legally when imposed the duties.

During nearly three hours of debate on Nov. 5, justices questioned whether Trump has the power to impose sweeping tariffs on most imports. The Constitution gives Congress sole authority to set taxes. But Solicitor General John Sauer argued that the duties imposed by Trump are “a regulatory tariff, not a tax.”

A legal challenge: Trump says his tariffs will help American businesses. So why are they suing?

At least three of the court’s six conservative justices – Chief Justice John Roberts and Justices Neil Gorsuch and Amy Coney Barrett – sounded skeptical of the Trump administration’s arguments. A fourth, Justice Brett Kavanaugh, who is sometimes a swing vote in politically divisive cases, appeared undecided.

A decision is expected soon.

Contributing: Maureen Groppe, Bart Jansen, Francesca Chambers and Joey Garrison

Michael Collins writes about the intersection of politics and culture. A veteran reporter, he has covered the White House and Congress. Follow him on X: @mcollinsNEWS

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